SIPP Advice

bigadaj

splodge2001 wrote: »

Does no one think I should go more into Fundsmith or Lindsell Train?

Why not the 2.30 at kempton?

Prism

splodge2001 wrote: »

Does no one think I should go more into Fundsmith or Lindsell Train?

I would but only you can decide for yourself. My SIPP is roughly 50% Fundsmith. My wife is 50% Lindsell Train

[Deleted User]

bigadaj wrote: »

OP please ignore this poster, he has been shown to be an inexperienced and naive investement fool on many threads, so far a lucky fool but a fool all the same.

ZPZ you seems to have admitted your errors on a previous thread, please don't mislead people again.

Show me an investor who never made an error.

One of the mistakes I ironed out years ago was spreading my investments all over the place in the mistaken belief that it offered extra protection against the vagaries of fortune.
I'm not misleading anyone. For the record:
This year Microsoft are up 50%, Apple 77%
Over the last twelve years +500% and +1200%
If splodge had been lucky enough to have had her investment split between Apple and Microsoft in 1988, the investment would now be worth a million pounds.

[Deleted User]

splodge2001 wrote: »

Does no one think I should go more into Fundsmith or Lindsell Train?

You are making every mistake most of us would have done without the benefit of experience. The difference is that you don’t have time to learn from your own mistakes, so coming here is a good start.

Some of the typical errors involve:

1. Picking hot stocks or funds based on what you’ve read in a newspaper or from the talking heads on TV. Cannabis is a good example; at least you didn’t buy crypto.

2. Chasing performance. A stock or an active fund doing well for a year or two tells you nothing about future performance.

3. Keeping your losers. The question you should ask yourself: “would I buy cannabis stocks today because I expect them to outperform?”. If the answer is “no” then get rid of them.

4. Typically, the next step after rushing into blunders for a few years is to go back to an expensive broker/advisor or (the worst case) staying out of investments altogether.

You need to design a strategy and then implement it rather than just pick “X, Y or Z” because it sounds good or someone said so.

In order to design a simple strategy you need a little education. Won’t take much time. This will work. DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning Kindle Edition by John Edwards (Author)

P.S. in my opinion you need a single multi-asset fund with a balanced portfolio of stocks and bonds, but you need to build your own strategy.

splodge2001

Deleted_User wrote: »

You are making every mistake most of us would have done without the benefit of experience. The difference is that you don’t have time to learn from your own mistakes, so coming here is a good start.

Some of the typical errors involve:

1. Picking hot stocks or funds based on what you’ve read in a newspaper or from the talking heads on TV. Cannabis is a good example; at least you didn’t buy crypto.

2. Chasing performance. A stock or an active fund doing well for a year or two tells you nothing about future performance.

3. Keeping your losers. The question you should ask yourself: “would I buy cannabis stocks today because I expect them to outperform?”. If the answer is “no” then get rid of them.

4. Typically, the next step after rushing into blunders for a few years is to go back to an expensive broker/advisor or (the worst case) staying out of investments altogether.

You need to design a strategy and then implement it rather than just pick “X, Y or Z” because it sounds good or someone said so.

In order to design a simple strategy you need a little education. Won’t take much time. This will work. DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning Kindle Edition by John Edwards (Author)

P.S. in my opinion you need a single multi-asset fund with a balanced portfolio of stocks and bonds, but you need to build your own strategy.

Thanks for this I think I'll get the book but it sounds like I just need one fund. Which are the best?

[Deleted User]

There are several that are very similar. VLS 60 or HSBC Global Strategy Balanced are good options. But you need to understand why.

kinger101

ZingPowZing wrote: »

If splodge had been lucky enough to have had her investment split between Apple and Microsoft in 1988, the investment would now be worth a million pounds.

If splodge had a time machine, she'd have probably bought a winning Euromillions lottery ticket and placed lots of accumulator bets.

bigadaj

ZingPowZing wrote: »

Show me an investor who never made an error.

One of the mistakes I ironed out years ago was spreading my investments all over the place in the mistaken belief that it offered extra protection against the vagaries of fortune.
I'm not misleading anyone. For the record:
This year Microsoft are up 50%, Apple 77%
Over the last twelve years +500% and +1200%
If splodge had been lucky enough to have had her investment split between Apple and Microsoft in 1988, the investment would now be worth a million pounds.

But in 1988 you would have totally ignored apple and Microsoft because they were not the largest companies in the world....

Surely by that logic you would have held maybe Exxon and General motors? Thirty year returns wouldn't have been so spectacular in that case I would assume. General Motors filed for chapter 11 bankruptcy around ten years ago.

[Deleted User]

bigadaj wrote: »

But in 1988 you would have totally ignored apple and Microsoft because they were not the largest companies in the world....

Surely by that logic you would have held maybe Exxon and General motors? Thirty year returns wouldn't have been so spectacular in that case I would assume. General Motors filed for chapter 11 bankruptcy around ten years ago.

I mentioned two tech companies from a handful of the best known names following splodge's lead. Consensus is that investing in a handful of stocks is terribly risky, so I thought I'd share the potential upside. To me, the possibility of a Woodford style gating makes funds the riskier proposition.

[Deleted User]

ZingPowZing wrote: »

I mentioned two tech companies from a handful of the best known names following splodge's lead. Consensus is that investing in a handful of stocks is terribly risky, so I thought I'd share the potential upside. To me, the possibility of a Woodford style gating makes funds the riskier proposition.

Going for active funds and particularly rockstar managers has its risks but it’s not the only option.

You are correct; AAPL is large and has been successful. Do you seriously think that investors aren’t aware? And if they are, why wouldn’t it be baked into the price? Did you know that Apple’s revenue has been falling and so have earnings per share? Yes it is a trillion dollar company. If the market cap continues growing at the same rate, won’t be too long before AAPL will become more valuable than the rest of the world. Do you think it’s likely? Your method of screening stocks is a little unorthodox.